6. Kims utility function is given by U = 5X + 2Y, where M U X =...

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6. Kim’s utility function is given by U = 5X + 2Y, where M U X = 5 and M U Y = 2.

a. Suppose that at the prices P X and P Y of good X and good Y, respectively, Kim is consuming

(optimally) some positive amount of good X and some positive amount of good Y.

What is the price of good X in terms of the price of good Y ?

b. How will her consumption change if P X doubles, while P Y does not change?

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